In an effort to include all investors from all experience levels and to communicate deal specifics in the most time efficient manner. The following has been prepared with the most common questions that beginning investors ask when the phrase “Reg D 506B Deal” is mentioned…
This is a first come (PPM signed and money wired into account) first serve to offer. Higher investment amounts will get priority. Once we had one investor bring in $400,000 dollars in the middle of the raise. We tried to accommodate as many investors as we could, however, taking fewer investors decreases costs and administrative tasks. In some cases we may restrict PPMs out to investors in order to minimize having to return funds that are wired in, however, typically we are under a deadline to close and operate in a “race for wires” protocol. We don’t try to do the classic marketing tactic of employing false scarcity but we do like to have an open dialogue with all investors in their level of interest in order to communicate to other investors on how quickly they need to act.
Question: We are doing a 506(b) syndication, but my understanding is that referrals are allowed as long as the investor can certify that they were not referred by a general solicitation. Please see this snippet from an exchange with our SEC attorney:
“If Alice, with whom we have a pre-existing relationship, shares our PPM with Bob, an accredited investor with whom we do not have a pre-existing relationship — and there is still no general solicitation on our part — would we be able to accept investment from Bob? Referrals are not general solicitation”
Soft Reserve Form
Confirming your investment amount on the electronic interest form is not a final investment decision. We understand that things come up where you may have to change your decision however we do keep track of de-commitments and flaky investors. Two incidences of un-committing will remove you from the Hui Deal Pipeline Club investor list. We use the timestamps to help us in determining our “priority order”.
Safe Wiring Practices
Logistically before you wire funds its a good idea to double check the wire instructions with me via text. There has been an uncommon scam in the world of the internet where hackers infiltrate inboxes and swap out documents with fraudulent wire instructions. It has never happened to me but I have friends who it happened to. It’s not the end of the world if you catch it early but just something to be aware of.
Once Again…
In every investment there is risk and this opportunity is no different. Based on our underwriting of the numbers and evaluation of the team using our combined network and different mastermind groups we are a part of, we feel this opportunity is where we are personally putting our money.
If you are new to syndications and uncomfortable please do not invest. Educate yourself with the following resources:
- Syndication Guide
- Review other investors questions
- Book a call with Lane and build a relationship because you should not invest with anyone you don’t know like or trust!